Explain three different approaches to calculate the GDP. Which approach should be used in the economy like Pakistan and Why? (Maximum 250 words) b: An economy produces two goods: tomatoes and ketchup. It is assumed that half of the tomatoes are bought and consumed as final good; the other half is used to produce ketchup. In 2014, 30 KGs of tomatoes are produced at Rs.60 each, and 20 KGs of ketchup are produced at Rs.200 each. In 2015, 40 KGs of tomatoes are produced at Rs.80 each, and 30 KGs of ketchup are produced at Rs.195 each. Find the following: i) Assuming 2014 is the base year; calculate the real, nominal GDP and GDP deflator in 2014 and 2015
Explain three different approaches to calculate the GDP. Which approach should be used in the economy like Pakistan and Why? (Maximum 250 words) b: An economy produces two goods: tomatoes and ketchup. It is assumed that half of the tomatoes are bought and consumed as final good; the other half is used to produce ketchup. In 2014, 30 KGs of tomatoes are produced at Rs.60 each, and 20 KGs of ketchup are produced at Rs.200 each. In 2015, 40 KGs of tomatoes are produced at Rs.80 each, and 30 KGs of ketchup are produced at Rs.195 each. Find the following: i) Assuming 2014 is the base year; calculate the real, nominal GDP and GDP deflator in 2014 and 2015
Principles of Macroeconomics (MindTap Course List)
7th Edition
ISBN:9781285165912
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter10: Measuring A Nation's Income
Section: Chapter Questions
Problem 9PA
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Question # 1
a: Explain three different approaches to calculate the GDP. Which approach should be used in the economy like Pakistan and Why? (Maximum 250 words)
b: An economy produces two goods: tomatoes and ketchup. It is assumed that half of the tomatoes are bought and consumed as final good; the other half is used to produce ketchup.
In 2014, 30 KGs of tomatoes are produced at Rs.60 each, and 20 KGs of ketchup are produced at Rs.200 each.
In 2015, 40 KGs of tomatoes are produced at Rs.80 each, and 30 KGs of ketchup are produced at Rs.195 each.
Find the following:
i) Assuming 2014 is the base year; calculate the real, nominal GDP and GDP deflator in 2014 and 2015.
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